Fed says it could take 5 or 6 yrs to drag out of this REPUBLICAN DYSTOPIA [View All]

[JohnWxy]

http://www.usatoday.com/money/economy/2009-11-24-gdp_N.htm?csp=34


"It could take "five or six years" or longer for the economy to return to normal, the Fed said. With some industries losing jobs permanently, it revised upward its estimated "longer-run unemployment" to about 5.1% from 4.9%."

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Federal Reserve policymakers see an improving short-term economic outlook but believe the economy and job market will remain sluggish for years, according to a forecast released Tuesday.
Other reports showed home prices and consumer confidence rose slightly recently. The developments portray a steady but tepid recovery.

"The economy and housing markets are benefiting enormously from very aggressive policy efforts," says economist Mark Zandi of Moody's Economy.com. Those include last summer's cash-for-clunkers program.

The Fed expects the economy to grow a bit more robustly the rest of this year and in 2010 than it previously anticipated, according to the minutes of its Nov. 3-4 meeting. It said the economy should contract 0.1% to 0.4% in 2009, better than its June forecast of 1% to 1.5%. And it now expects growth of 2.5% to 3.5% next year, up from 2.1% to 3.3%.

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